IVZ Share Price, page-19018

@butcherano
Do you intend to value a swiss cheese or Mukuyu?

If I recall correctly, VOGC stated that the M-2 fault block represents 26% of the 200Km2 (recently corrected by VOGC to 180Km2), so on that basis, the total volume is about 5 Tscf. (But my calculations suggest a total net pay thickness of 56m will be required to prove up 5 Tscf). In addition, shouldn't the current valuation include the M-1 fault block on a risked basis?

The method of valuation should include risk factors e.g. 10% of gas sales price for contingent resources, reserves at 50% (or100% when producing), and possibly 1% for prospective resources. The gas sales price is important. In southern Africa $A 6/mscf? Additional value from richer condensate and oil yet to be sampled in the south. Overall apply a DCF factor of 33% or possibly 37%.If M-2 is producing and generating electricity, the valuation should be much higher than it would be following a successful well test. Any comments are welcome, valuing assets can be subjective.